Progressive farmers share their cost of cultivation, production and profit in soybean in India

01 July 2022, Indore: We at Krishi Jagat discussed with selected progressive farmers about the cost of cultivation, production and profits in soybean which is the main crop of Kharif season in India. We have shared a short summary of three farmers on their cost of cultivation and profits.

1. Pandurang Narayan Rao Lokhande, Betul district of Madhya Pradesh

Pandurang Narayan Rao Lokhande, a progressive farmer of Betul district of Madhya Pradesh calculated the cost and production of soybean as follows:

Interest on one acre farm value (as per State Bank of India) Rs. 20,000/-, plowing Rs. 2,000/-, cultivator (twice) Rs. 16,000/-, chemical fertilizer 12:32:16 of quantity 75 kg which is Rs. 2,200, seeds 35 kg at the rate of 150/kh is Rs. 5,250/-, Sulfur 5 kg, Thyram + Imida + Raizo + PSB cost Rs. 2,000/-, sowing cost Rs.1,000/-, weedicide at sowing (brand – authority) Rs. 1,500/-, weedicide (after 20 days) and labor cost Rs. 3,000/-, insecticide and spray cost Rs. 2,500/-, harvesting Rs. 2,000/-, thresher Rs. 2,500/- and jute sack, loading and unloading Rs. 2000/- per acre. The total cost comes up to Rs 47,500 per acre.

He assumed the average production of soybean to be 9 quintals/acre. Market value of Rs. 7000/- per quintal gives Rs. 63,000/- out of which Rs. 15,500/- per acre profit has been worked out after deducting the cost of Rs. 47,500/-. In addition to this, deducting Rs.2000 on house hold labour and Rs.4000 of Mandi Commission leaves a profit of Rs. 9500 per acre if there is no natural calamity.

2. Mr. Kanhaiyalal Hernia, Indore district of Madhya Pradesh

Progressive farmer from Indore district, Mr. Kanhaiyalal Hernia, mentioned preparation of the field Rs. 1,200/- for the cultivator twice, levelling the land for Rs 1,200/-, Rs. 12,000 for seed and treatment, Rs. 4,660/- for chemical fertilizer NPK 20:80:20, seed drill for two hours Rs. 2,000/-, Weedicide one liter Rs. 2,000/- including wages, 2 to 3 times spray insecticide costs Rs 2,500/- with wages, Rs. 3,600/- for harvesting, Rs. 1,000 for bringing it to the store house. Total cost incurred is Rs. 32,160/ha. If we look at the total cost per acre, then it comes to around Rs. 13,014/-.

Their average production is 20 quintal/ha. Average market price Rs. 4200/- X 20 quintal gives Rs. 84,000/ha. Subtracting the total cost incurred of Rs. 32,160/- gives Rs. 51,840/ha profit. On the basis of per acre, it gives a profit of about Rs. 20,979/-.

3. Mr. Yogendra Kaushik, Ujjain district of Madhya Pradesh

Progressive farmer Mr. Yogendra Kaushik calculated the cost and production of soybean as follows: Rs. 4,800/- acreage is for ploughing thrice for 6 hours @Rs.800/hour, Rs.400/- seed treatment, Rs.10,000/- for Seeds, Rs. 6,000/- for spray of pesticides two or three times according to season, Rs. 4,000/- for manual weeding, 3 labourers for Rs. 900/spray, Rs. 10,000/- harvesting per hectare with 25 labourers, Rs. 3,600/- for threshing for 3 hours, Rs. 1,000/- other expenses, total cost comes to Rs. 40,700/- per hectare. If we look at the total cost per acre, then it comes to about Rs. 16,471/-.

The production of soybean is between 20 to 25 quintals per hectare. Average production of 20 quintals and total income at the rate of Rs.6000/- per quintal is Rs. 1,20,000/-. Subtracting total expenditure Rs. 40,700/- gives profit of Rs. 79,300/ha. profit can be made, if the weather is favourable. On the basis of per acre, profit comes to around Rs. 32,092/-.

It is difficult to compare all the three cost of cultivation of the above shared above as there are many variable factors that the farmer has to take into account. Even the market rates of all the three farmers are different which gives them different profit levels.

This cost of cultivation will help you understand the three variable costs of farming and decide on the total investment as per the market value.

Also Read: CNH Industrial Capital India commences Financial Literacy Program for farmers